Best Private Banks to Help You Bank Like The Wealthy - SmartAsset (2024)

Private banks want the business ofhigh-net-worth individuals, so they often end up creating accounts and services that are specific to those who can afford them. However, the best private banks are typically large enough that anyone can benefit from some of this activity as well. We’ve compiled a list of the best private banks that you could use, regardless of your net worth. If you really want to bank like the wealthy, you should consider speaking with a financial advisor who can help navigate you to your best financial outcome.

Best Private Banks

The best private banks are going to typically have a lot of assets under management, have a good understanding of how to cater to high-net-worth individuals, have a global footprint, and offer a wide amount of investment options. The right private bank is going to depend on more than that though as it will likely have a deep knowledge of your local market and the ability to offer you what you need.

Here are some of the best private banks available:

The best private bank for you might be on this list. It’s important to discuss your needs with a financial advisor, who can help you navigate the process of finding the right bank that offers the services you need the most. Now, let’s take a look at how you can start to think and bank like a high-net-worth individual so that you can grow your total assets.

Wealthy Individuals Stick With Big-Name Banks

As you can tell from the list above, high-net-worth individuals often turn to the same national banks that the rest of us use to meet our banking needs.Why are the wealthy skipping out on smaller banks? Accessibility, technology and resources, to be brief.

Accessibility is a key concern for many wealthy clients, since many are frequently traveling. A national bank has more branches in more locations than a bank that only serves a specific geographic area.

Technology is also a key factor in winning over clients. A2020 banking survey by Chase says that 54% of consumers use digital banking tools more than they did last year because of the pandemic. And this trend is expected to continue at a greater frequency in 2021. So while credit unions and community banks are becoming more technologically savvy, big banks are still more likely to offer the latest and most innovative products and services.

Finally, a big bank with more than a trillion dollars of assets under management has access to more investment opportunities and more resources than a community bank.

The Best Private Bank Services

Just because a wealthy person uses the same bank as you, doesn’t mean they’re banking in the same way. Someone who has $5 million to stash isn’t going to walk into abank asking for a regular checking account. If they do, they stand to miss out on some valuable benefits associated with private banking services. Seeking out aprivate wealth manageror a financial advisor might make more sense when there’s a large amount ofmoney involved. These services might be more affordable than you think.

The most notable difference between private banking and traditional banking is the highly personalized service that comes with private banking. Rather than dealing with a different teller on each visit, you would have a dedicated banker or perhaps even a team of bankers who are familiar with your account and your overall financial picture. Your banker(s) will tailor their services to fit your situation rather than the other way around.

Access to private banking, however, typically requires a balance of at least $50,000, with many banks setting the minimum at $500,000 or higher. This is why private banking services are typically reserved for the ultra-wealthy. However, the largest banks make many investment options or banking services outside of the personal touch available to many of their other customers.

Don’t Miss a Chance to Grow Your Wealth

Many rich investors understand that they need to make smart investments in order to hold on to their wealth and boost their net worth, and you should think about doing that too. A recent report shows that among individuals with a net worth of $100,000 to $25 million, only 13%of their assets are in cash or liquid investments while nearly 60% of theirassets are invested in equities. That means that while the rich are parking some big bucks in their checking and savings accounts, they’re still investing the bulk of their wealth in the market.

In contrast, a surveyfound that the typical American investor keeps 65% of their assets in cash and only 18% in equities. The takeaway? When it comes to banking and investing, the rich and ultra-rich aren’t letting their assets languish in accounts that earn paltry returns. Some of this is unavoidable, of course. We all need to keep some money in cash to handle day-to-day expenses, and for the truly wealthy, 13% of their assets is plenty of cash to have on hand! For the average person, though, the money we need for regular expenses are a substantial percentage of our assets.

The takeaway, though, is that you don’t want to miss out on any opportunity you have to grow your wealth. This means buying real estate you can afford and investing the cash you aren’t likely to need in the near future. Changing your mentality to a growth mentality could be life-changing over the course of the next 10 or 20 years.

Bottom Line

When you have millions of dollars in the bank, you make different decisions whenbanking and investing. The rich use big banks and private banking institutions. They also tend to put their money into riskier investment vehicles, focusing on maintaining and expanding their wealth. The best private banks, though, offer many investment options and services to all of their customers. The sheer size of these banks makes it where you can benefit if you understand how to invest properly.

Tips for Growing Wealth

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